Chart Prepared by Jamie Saettele, CMT
FOREXObservations: Last Wednesday’s price action constitutes a JS Spike (emotional top) but the decline from the top may be in just 3 waves. There are valid bearish counts (such as a flat from the 11/7 low in which case the AUDUSD would pop above 10443 before turning lower again), but the lack of a clean bearish impulse necessitates that we at least allow for a test of the high.
FOREXTrading Strategy Implications: “The Wednesday reversal is enough to be bearish…” but confidence is low. Exceeding 10479 could result in extension towards 10550. Weakness below 10359 is needed to put the bearish path comfortably back on track.
LEVELS: 10330 10368 10407 10443 10480 10550
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.